Class III Markets Continue Slide
CME spot product markets on Thursday closed with little change. Butter declined a half cent to $2.07 per pound. Both blocks and barrels settled unchanged. Blocks stayed at $1.52 with no trades taking place. Barrels ended at $1.35 per pound. Grade A nonfat dry milk added a quarter cent and closed at 73 3/4 per pound.
Class III milk markets fell for the second day in a row. February through April dropped 8 to 11 cents while May was down 5 cents. June through the end of the year ranged from 3 cents lower to 7 cents higher. January 2019 softened 2 cents. Class IV milk markets had February down 10 cents and March 5 cents lower. No other months traded Thursday.
The February Supply and Demand report was released by the USDA on Thursday as well. South American production, U.S. exports and ending stocks were the categories of interest. Exports figures on U.S. corn were raised 125 million bushels and dropped ending stocks the same amount to 2.352 billion bushels. World corn ending stocks fell 3.5 million metric tons. The drop in U.S. ending stocks accounted for 91% of the world drop. Argentina corn production was down 3 metric tons and Brazil's was left unchanged. Exports on soybeans were down 60 million bushels in the U.S. and added the same amount to ending stocks, which grew to 530 million bushels.
Argentina soybean production was adjusted 2 metric tons lower while Brazil offset that loss by adding 2 metric tons to its production. World soybean ending stocks dropped a half of a metric ton.